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India Focuses on Reviving BSNL and Supporting Vodafone Idea, Seeks Market with 4 to 5 Telecom Players

Written by: Team Angel OneUpdated on: 2 Jul 2025, 8:59 pm IST
India plans 4-5 telecom players, supports Vodafone Idea with ₹36,000 crore equity, and pushes BSNL revival for a balanced market.
India Focuses on Reviving BSNL and Supporting Vodafone Idea, Seeks Market with 4 to 5 Telecom Players
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India is setting the stage for a more competitive telecom sector by aiming to sustain 4-5 major players, reviving BSNL, and supporting Vodafone Idea. With the current duopoly driven by capital-heavy operators, the government is working to foster a more diversified market to enhance sector stability and innovation.

Government Pushes for Telecom Market with 4-5 Major Players

During the India Mobile Congress 2025 roadshow in Bengaluru, Minister of State for Communications Chandra Sekhar Pemmasani revealed that the government's strategic vision for the telecom industry includes nurturing 4-5 active players. The current dominance of Reliance Jio and Bharti Airtel, he said, reflects market realities and capital intensity, not government policy. Despite the rapid 5G rollout achieved through these players, the government aims to reduce dependency on just 2 providers.

Reviving BSNL as a National Telecom Alternative

The revival of BSNL remains critical to the broader goal of enhancing competition and self-reliant infrastructure. Although progress is slower due to the focus on building indigenous telecom technology, the government continues to invest in the public sector telecom company. The vision is for BSNL to emerge as a reliable third or fourth alternative, supporting domestic innovations in the long term.

Support for Vodafone Idea Through Financial Assistance

To ensure market diversity, the government converted ₹36,000 crore of dues into equity for Vodafone Idea. While the company still faces financial stress, such assistance highlights the willingness to prevent a telecom duopoly. The intent is to make Vodafone Idea a viable competitor again, stabilising market dynamics and preserving consumer choice.

Read More: India's Online Commerce Set to Soar $300 billion by 2030: Report by Bessemer Ventures

India's 6G Goals and AI in Telecom Innovation

In a significant shift from earlier generations where India merely adopted global standards, the country has now contributed to 10% of 6G global standards and filed over 200 patents. The aim is to launch 6G alongside global leaders like the US and China by 2030. Artificial Intelligence integration is also transforming the telecom landscape, offering tools such as fraud risk indicators that proactively assess user behaviour patterns.

Connectivity Milestones and BharatNet Expansion

India has made remarkable strides in broadband and mobile penetration, with 1.2 billion mobile users and 1 billion broadband subscribers. The BharatNet initiative has connected 2.2 lakh villages, bridging the digital divide. With an additional $18 billion set aside, the programme will reach another 40,000 gram panchayats and 1.5 crore rural homes. Moreover, mobile device exports have touched ₹1.8 trillion annually, up from 75% earlier dependence on imports.

Conclusion

India's telecom policy now aims for a well-diversified industry backed by long-term investment in public infrastructure and private revival. With BSNL resurgence, Vodafone Idea support, and ambitions in 6G and AI, the sector is poised for a robust, innovation-driven future. Enhanced rural connectivity under BharatNet adds further momentum to this transformation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jul 2, 2025, 3:29 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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